By Atoyebi Nike
Gold and silver prices dropped sharply on Wednesday, marking a second day of losses that ended a powerful rally in precious metals. The decline followed comments by former US President Donald Trump suggesting his planned meeting with Chinese leader Xi Jinping might not happen, cooling market optimism.
Gold, which has surged more than 60 percent this year, fell as much as six percent after hitting a record high of $4,381.51 an ounce on Tuesday. By Wednesday, it briefly touched $4,000. Silver also plunged, mirroring gold’s downturn.
Analysts linked the sell-off to profit-taking, a stronger dollar, and hopes for easing US-China trade tensions. Mining stocks were hit hard, with Northern Star Resources down eight percent and Hong Kong’s Zijin Mining off more than four percent.
“Gold’s glorious charge finally met gravity,” said Stephen Innes of SPI Asset Management, noting that volatility in gold had overtaken equities. Still, he and other analysts said long-term demand remains strong as central banks continue to stockpile reserves.
Charu Chanana of Saxo Markets described the drop as a “healthy correction” that could prevent the market from overheating.
Asian and European stock markets were mixed, while oil prices climbed about two percent amid reports that India may cut Russian crude imports under a new US trade arrangement.
